The past few days have been volatile for investors in this restaurant software service provider. Nominal technology ( BY -2.18% ) originally announced a public offering of shares and convertible senior notes on September 13, and today the company announced the offering price.
The conversion rate for the 2027 Notes will be 12.987 shares for every $1,000 of Notes, which equates to a trading price of $77. This represents a 37.5% premium to the price per share in the stock offering. The offering is expected to close on September 17, 2021.
ParTech’s stock price was trading up 8.5% at 2:43 p.m. EDT Wednesday after the news release.
Total net proceeds from the offering are expected to be approximately $275.4 million, excluding underwriting fees, commissions and rebates. If the underwriters exercise the option to fully subscribe for the additional shares and 2027 Notes, proceeds could reach $309.3 million.
This product could go a long way in accelerating the company’s growth initiatives. ParTech envisions a massive growth opportunity where approximately 1 million restaurants in the United States spend a small portion of their revenue on marketing and technology, like voice AI, which is rapidly changing the way people order food.
ParTech recently completed the acquisition of Punchh for $500 million in the second quarter, which creates a cloud commerce leader for large restaurants, serving 40 of the top 100 restaurant companies. Management believes this acquisition should enable the combined company to help restaurant operators increase customer engagement through loyalty and promotional marketing. Analysts currently expect ParTech to grow earnings per share by 18% annually over the next five years.
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